Mar 31, 2015
1. General Information
Carnation Industries Limited (the Company) is a public company
domiciled and incorporated in India. The company is engaged in the
manufacture of foundry based engineering goods namely Cast Iron,
Ductile Iron and Mild Steel Castings predominantly for export and also
for domestic market having plants at various locations in West Bengal.
Its shares are listed on two stock exchanges in India (Bombay Stock
Exchange and The Calcutta Stock Exchange Ltd.).
2. Terms/rights attached to equity shares
The company has only one class of equity shares having face value of
Rs. 10 per share. Each holder of equity shares is entitled to one vote
per share. The company declares and pays dividends in Indian rupees.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
3. During the year ended 31st March 2015, the amount of per share
dividend recognised as distributable to equity shareholders is Re: 0.60
(31st March 2014: Re. 0.80). The total dividend appropriation for the
year ended 31-03-2015 amounted to Rs.24.89 lacs (Previous year Rs.32.36
lacs) including corporate dividend tax of Rs. 4.15 lacs(Previous year
Rs.4.70 lacs).
4. In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will be
in proportion to the number of equity shares held by the shareholders.
5. LONG -TERM BORROWINGS From Banks
(Secured against purchase of bills, hypothecation of stock in trade,
Book Debts and receivables, Term Deposits, Equitable Mortgage of Land /
Buildings owned by the Company as well as by some Direc- tors, charge
on the existing and future plant & machinery owned by the Company and
personal guar- antee of some Directors and guarantee by ECGC on
pari-passu basis amongst the Bankers, including for short term
borrowings)
6. SHORT-TERM BORROWINGS From Banks
(Secured against purchase of bills, hypothecation of stock in trade,
Book Debts, and receivables, Term Deposits, Equitable Mortgage of Land
/ Buildings owned by the Company as well as by some Directors, charge
on the existing and future plant & machinery owned by the Company and
personal guarantee of some Directors and guarantee by ECGC on
pari-passu basis amongst the Bankers including for long term
borrowings.)
7 In view of insufficient information from the suppliers regarding
their status as Micro, Small and Medium Enterprises, the amount
remaining unpaid to such undertakings could not be ascertained for
separate disclosure in our accounts.
8 Charge of hypothecation over Current Assets & Raw Materials procured
under letter of credit in favour of bankers has been created for letter
of credit issued. Agreegate value of such letter of credit outstanding
as on 31st March, 2015 is Rs.787.64 lacs. (Previous Year Rs.695.36
lacs.)
9 Export proceeds in foreign exchange from a related party of Rs.
2907.51 lacs (Previous year Rs.1403 lacs) could not be realised within
12 month from the dates of export as at the end of the year. Total
outstanding as on 31.03.2015 is Rs. 3173.04 lacs (Previous Year Rs.
3178.55 lacs). Out of that Rs. 64.75 lacs have since been realised.
10. OTHER NOTES
i) Estimated amount of contracts remaining to be executed on Capital
Account is Rs. NIL (Net of advance of Rs. NIL) (Previous year Rs. 4.17
lacs, net of advance Rs. 25.63 lacs.)
ii) Contingent liability not provided for in respect of : (Rs. in Lacs)
As at As at
31.03.15 3 1.03.14
a) Outstanding Bank Guarantee 104.68 57.33
b) Disputed Duty & Penalty under 86.56 86.56
Central Excise Law
c) Disputed Vat Demand for the 100.13 100.13
Financial Year 2007-08
d) Duty drawback received
amounted to Rs.57 lacs (Approx)
(Previous year Rs. 27.00 lacs)
is subject to export realisation.
11. In addition, the company has a few outstanding legal proceedings
which have arisen in the ordinary course of business. However the
company's management does not expect this legal proceedings, when
concluded will have any material and adverse effect on the financial
position of the company.
12 The Company, in respect of its claim for refund of Input Tax
Credit amounting to Rs.106.03 lacs for the Financial Year 2005-06 had
fled a revision petition u/s 87 of the VAT Act, 2003 against the
Appellate Authority's order dt. 25/03/2011, rejecting the appeal and
also fled an appeal before The West Bengal Commercial Taxes Appellate
and Revisional Board for the financial year 2007-08 against the order
passed by the Joint Commisioner of Sales Tax, Kolkata (South) Circle,
rejecting the total claim of ITC for that year and also raised a demand
for Rs.100.13 lacs.The revision petition and the appeal are still
pending. Claims for the refund of Input Tax Credit in respect of other
financial years are at various stages of adjudication with the Sales
Tax Department. The Company expects realisation of these refund claims
not later than 12 months from 31st March, 2015. The company had also
been advised by its lawyer that these claims were worked out and made
in confrmity and compliance with the stipulated rules and procedures.
During the current financial year the company has partly received
provisional refund of Input Tax Credit amounting to Rs.93.06 lacs,
Rs.182.02 lacs and Rs. 50.05 lacs out of claims made for the financial
year 2012-2013, 2013-2014 and 2014-2015 against submission of Indemnity
Bonds equivalent to the amount of claim.
13 The company recognises overdue interest on export sales as and when
the sale proceeds is realised as mutually agreed.
14 The Additional Commissioner of Central Excise, Kol-II and Haldia
Commissionarate have raised two separate demands with penalty
agreegating to Rs. 136.56 lacs out of which Rs. 50.00 lacs was paid in
the financial year 2007-08. The Company had fled Appeals against the
above demands before the Commissionarate (Appeal -I&II) of Central
Excise Kolkata which are still pending.
15 Gratuity and Other Post-Employment Benefit Plans:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
16 The Company also provides Leave Encashment Benefit to employees,
whereby unutilised leave is carried forward and eligible for encashment
upon retirement / termination.
17.The following tables summarise the components of net benefit expense
recognised in the Profit and Loss Account and amounts recognised in the
Balance Sheet for the respective plans.
18. In the opinion of the board, all Current Assets and Non-Current
Assets have a value on realisation in the ordinary course of business
at least equal to the amount at which they are stated in the
accounts.Balance confirmation from certain vendors are yet to be
received by the company.
19 The assets and liabilities which are expected to be realised and
payable in the ordinary course of business not later than 12 months
from the reporting date have been classified as current assets and
current liabilities in the Balance Sheet. All other assets and
liabilities have been classified as non-current.
20 Foreign Exchange gain of Rs.228.38 lacs (Previous year gain Rs.
94.66 lacs) are net of exchange gain of Rs. 1.74 lacs (Previous year
Rs.1.00 lacs) arising out of conversion of unexpired forward exchange
contract at marked to market and loss of Rs. 1.72 lacs (P.Y. Rs.21.06
lacs) arising out of cancellation of forward exchange contract during
the year.
21 The following table shows the distribution of the Company's
consolidated sales by geographical market, regardless of where the
goods were produced.
22. The Company has common cost, fixed assets and liabilities for all
geographical segments, hence separate figures for segment results,
fixed assets/addition to fixed assets and liabilities have not been
furnished.
23. Provision for current tax has been made under the normal positions
of the Income Tax Act, net of MAT credit.
Mar 31, 2014
1. General Information
Carnation Industries Limited (the Company) is a public company
domiciled and incorporated under the provisions of the Indian Companies
Act, 1956. The company is engaged in the manufacture of foundry based
engineering goods namely Cast Iron, Ductile Iron and Mild Steel
Castings predominantly for export and also for domestic market having
plants at various locations in West Bengal. Its shares are listed in
two stock exchanges in India (Bombay Stock Exchange Limited and The
Calcutta Stock Exchange Limited).
2. OTHER NOTES
i) Estimated amount of contracts remaining to be executed on Capital
Account is Rs.4.17 Lacs (Net of advance of Rs. 25.63 lacs) (Previous
year Rs.4.17 lacs, net of advance Rs. 25.63 lacs).
(Rs. in Lacs)
ii) Contingent liability not provided for
in respect of : As at As at
31.03.2014 31.03.2013
a) Outstanding Bank Guarantee 57.33 49.33
b) Disputed Duty & Penalty under Central
Excise Law 86.56 86.56
c) Disputed Vat Demand for the Financial
Year 2007-08 100.13 100.13
d) Duty drawback received amounted to Rs. 27.00 lacs (Approx) (Previous
year Rs.15.00 lacs) is subject to export realisation.
iii) The Company, in respect of its claim for refund of Input Tax
Credit amounting to Rs.106.03 lacs for the Financial Year 2005-06 had
filed a revision petition u/s 87 of the VAT Act, 2003 against the
Appellate Authority''s order dt. 25/03/2011, rejecting the appeal and
also filed an appeal before The West Bengal Commercial Taxes Appellate
and Revisional Board for the financial year 2007-08 against the order
passed by the Joint Commisioner of Sales Tax, Kolkata (South) Circle,
rejecting the total claim of ITC for that year and also raised a demand
for Rs.100.13 lacs.The revision petition and the appeal are still
pending. Claims for the refund of Input Tax Credit in respect of other
financial years are at various stages of adjudication with the Sales
Tax Department The Company expects realisation of these refund claims
not later than 12 months from 31st March, 2014. The company had also
been advised by its lawyer that these claims were worked out and made
in confirmity and compliance with the stipulated rules and procedures.
During the current financial year the company has received provisional
refund of Input Tax Credit amounting to constitute Rs. 39.54 lacs, Rs.
50.36 lacs and Rs. 33.08 lacs, which 75% of the amount of accepted
claims for the quarter 3rd & 4th quarter of the financial year
2011-2012 and first for the financial year 2012-2013 against submission
of Indemnity Bonds equivalent to the amount of claim.
iv) The company recognises overdue interest on export sales as and when
the sale proceeds is realised as mutually agreed.
v) The Additional Commissioner of Central Excise, Kol-II and Haldia
Commissionarate have raised two separate demands with penalty
agreegating to Rs.136.56 lacs out of which Rs. 50.00 lacs was paid in
the financial year 2007-08. The Company had filed Appeals against the
above demands before the Commissionarate (Appeal - I & II) of Central
Excise Kolkata which are still pending.
vi) Gratuity and Other Post-Employment Benefit Plans:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The Company also provides Leave Encashment Benefit to employees,
whereby unutilised leave is carried forward and eligible for encashment
upon retirement / termination.
The following tables summarise the components of net benefit expense
recognised in the Profit and Loss Account and amounts recognised in the
Balance Sheet for the respective plans.
The discount rate should be based upon the market yields available on
Government bonds at the accounting date with a term that matches that
of the liabilities and the salary increase should take account of
inflation, seniority, promotion and other relevant factors.
vii) In the opinion of the board, all Current Assets and Non-Current
Assets have a value on realisation in the ordinary course of business
at least equal to the amount at which they are stated in the accounts.
Balance confirmation from certain vendors are yet to be received by the
company.
viii) The assets and liabilities which are expected to be realised and
payable in the ordinary course of business not later than 12 months
from the reporting date have been classified as current assets and
current liabilities in the Balance Sheet. All other assets and
liabilities have been classified as non-current.
ix) Foreign Exchange gain of Rs.94.66 lacs (Previous year gain
Rs.137.88 lacs) are net of exchange gain of Rs.1.00 lacs (Previous year
loss Rs.7.90 lacs) arising out of conversion of unexpired forward
exchange contract at marked to market and loss of Rs. 21.06 lacs (P.Y.
Rs.8.08 lacs) arising out of cancellation of forward exchange contract
during the year.
xi) Provision for current tax has been made on the Book Profit of the
Company under Provisions of the Minimum Alternate Tax and asset in
respect thereof has not been recognised.
xv) Previous year''s figures have been regrouped / revised wherever
found necessary.
Mar 31, 2013
1. General Information
Carnation Industries Limited (the Company) is a public company
domiciled and incorporated under the provisions of the Indian Companies
Act, 1956. The company is engaged in the manufacture of foundry based
engineering goods namely Cast Iron, Ductile Iron and Mild Steel
Castings predominantly for export and also for domestic market having
plants at various locations in West Bengal. Its shares are listed on
two stock exchanges in India (Bombay Stock Exchange and Calcutta Stock
Exchange).
(Rs. in Lacs)
i) Contingent liability not
provided for in respect of : As at As at
31.03.2013 31.03.2012
a) Outstanding Bank Guarantee 49.33 49.93
b) Disputed Duty & Penalty under
Central Excise Law 86.56 86.56
c) Disputed Vat Demand for the
Financial Year 2007-08 100.13 100.13
d) Duty drawback received amounted
to Rs. 15.00 lacs (Approx) is
subject to export realization.
ii) The Company, in respect of its claim for refund of Input Tax
Credit amounting to Rs.106.03 lacs for the Financial Year 2005-06 had
filed a revision petition u/s 87 of the VAT Act, 2003 against the
Appellate Authority''s order dt. 25/03/2011, rejecting the appeal and
also filed an appeal before The West Bengal Commercial Taxes Appellate
and Provisional Board for the financial year 2007-08 against the order
passed by the Joint Commissioner of Sales Tax, Kolkata (South) Circle,
rejecting the total claim of ITC for that year and also raised a demand
for Rs.100.13 lacs. The revision petition and the appeal are still
pending. Claims for the refund of Input Tax Credit in respect of other
financial years are at various stages of adjudication with the Sales
Tax Department .The Company expects realization of these refund claims
not later than 12 months from 31st March, 2013. The company had also
been advised by its lawyer that these claims were worked out and made
in conformity and compliance with the stipulated rules and procedures
During the current financial year the company has received provisional
refund of Input Tax Credit amounting to Rs.30.05 lacs, Rs.38.04 lacs
and Rs.51.27 lacs, which constitute 75% of the amount of accepted
claims for the second quarter of the financial year 2010-2011 and
first two quarters for the financial year 2011-2012 against
submission of Indemnity Bonds equivalent to the amount of claim.
iii) Export Incentives on Export Sales have been hitherto accounted for
in the year of recognition of Export. In view of Hon''ble Supreme
Court Judgement in the case of Topman Exports & also on the basis of
assessments made in our case during past assessment years the company
has changed the method of accounting in respect of export incentives
under Focus Product Scheme and such export benefit is accounted for on
the basis of claim made till the approval of the annual financial
statements by the Board of Directors on actual or estimated realizable
value as the case may be. As a consequence of this, current year export
incentive income and profit is lower by Rs. 114.11 lacs.
iv) The Additional Commissioner of Central Excise, Kol-II and Haldia
Commissionarate have raised two separate demands with penalty
agreegating to Rs. 136.56 lacs out of which Rs. 50.00 lacs was paid in
the financial year 2007-08. The Company had filed Appeals against the
above demands before the Commissionarate (Appeal - I & II) of Central
Excise Kolkata which are still pending.
v) Gratuity and Other Post-Employment Benefit Plans:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The Company also provides Leave Encashment Benefit to employees,
whereby unutilised leave is carried forward and eligible for encashment
upon retirement / termination.
The following tables summaries the components of net benefit expense
recognized in the Profit and Loss Account and amounts recognized in the
Balance Sheet for the respective plans.
vi) In the opinion of the board, all Current Assets and Non-Current
Assets have a value on realization in the ordinary course of business
at least equal to the amount at which they are stated in the accounts.
Balance confirmation from certain vendors are yet to be received by the
company.
vii) The assets and liabilities which are expected to be realized and
payable in the ordinary course of business not later than 12 months
from the reporting date have been classified as current assets and
current liabilities in the Balance Sheet. All other assets and
liabilities have been classified as non-current.
viii) Foreign Exchange gain of Rs.137.88 lacs (Previous year loss
Rs.15.08 lacs) are net of exchange loss of Rs. 7.90 lacs (Previous year
Rs.50.65 lacs) arising out of conversion of unexpired forward exchange
contract at marked to market and Rs. 8.08 lacs (P.Y. Rs.70.06 lacs)
arising out of cancellation of forward exchange contract during the
year.
The Company has common cost, fixed assets and liabilities for all
geographical segments, hence separate figures for segment results,
fixed assets/addition to fixed assets and liabilities have not been
furnished.
ix) Provision for current tax has been made on the Book Profit of the
Company under Provisions of the Minimum Alternate Tax and asset in
respect thereof has not been recognized.
x) Related party disclosures and transactions:
xi) Previous year''s figures have been regrouped / revised wherever
found necessary.
Mar 31, 2012
1. General Information
Carnation Industries Limited (the Company) is a public company
domiciled and incorporated under the provisions of the Indian Companies
Act, 1956. The company is engaged in the manufacture of foundry based
engineering goods namely Cast Iron, Ductile Iron and Mild Steel
Castings predominantly for export and also for domestic market having
plants at various locations in West Bengal. Its shares are listed on
two stock exchanges in India (Bombay Stock Exchange and The Calcutta
Stock Exchange).
a) Terms/rights attached to equity shares
The Company has only one class of equity shares having face value of
Rs. 10 per share. Each holder of equity shares is entitled to one vote
per share. The Company declares and pays dividends in Indian rupees.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31 st March, 2012 the amount of per share
dividend recognised as distributable to equity shareholders is Re: 0.60
(31st March, 2011: Re. 0.40). The total dividend appropriation for the
year ended 31-03-2012 amounted to Rs. 24.10 lacs including corporate
dividend tax of Rs. 3.36 lacs.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
2. LONG -TERM BORROWINGS From Banks
(Secured against purchase of bills, hypothecation of Stock-In-Trade,
Book Debts and Receivables, Term Deposits, Equitable Mortgage of Land /
Buildings owned by the Company as well as by some Directors, charge on
the existing and future plant & machinery owned by the Company and
personal guarantee of some Directors and guarantee by ECGC on
pari-passu basis amongst the Bankers, including for short term
borrowings).
3. SHORT-TERM BORROWINGS From Banks
(Secured against purchase of bills, hypothecation of Stock-In-Trade,
Book Debts, and Receivables, Term Deposits, Equitable Mortgage of Land
/ Buildings owned by the Company as well as by some Directors, charge
on the existing and future plant& machinery owned by the Company and
personal guarantee of some Directors and guarantee by ECGC on
pari-passu basis amongst the Bankers including for long term
borrowings.)
a) In view of insufficient information from the suppliers regarding
their status as Micro, Small and Medium Enterprises, the amount
remaining unpaid to such undertakings could not be ascertained for
separate disclosure in our accounts.
b) Charge of hypothecation over Current Assets & Raw Materials procured
under letter of credit in favour of bankers has been created for letter
of credit issued. Agreegate value of such letter of credit outstanding
as on 31st March, 2012 is Rs.617.77 lacs. (Previous Year Rs. 512.59
lacs.)
4. OTHER NOTES
i) Estimated amount of contracts remaining to be executed on Capital
Account is Rs. 182.25 lacs (Net of advance of Rs.131.75 lacs) (Previous
year Rs. 103.79 lacs, net of advance Rs. 34.60 lacs.)
(Rs. in Lacs)
ii) Contingent liability not provided for in respect of :
As at As at
31.03.2012 31.03.2011
a) Outstanding Bank Guarantee 49.33 44.90
b) Disputed Duty & Penalty under Central
Excise Law 86.56 86.56
c) Disputed Vat Demand for the Financial
Year 2007-08 100.13 -
iii) In view of favourable judgement by the Supreme Court the company
does not envisage any liability in respect of pending departmental
appeals for the assessment year 2000-2001,2001 -2002 and 2002-2003
amounting to Rs. 136.99 lacs.
iv) The Company, in respect of its claim for refund of Input Tax Credit
amounting to Rs.106.03 lacs for the Financial Year 2005-06 has filed a
revision petition u/s 87 of the VAT Act, 2003 against the Appellate
AuthorityâÃÃs order dt. 25/03/2011, rejecting the appeal. The Company
has filed an appeal before the West Bengal Commercial Taxes Appellate
and Revisional Board for the financial year 2007-08 against the order
passed by the Joint Commisioner of Sales Tax, Kolkata (South) Circle,
rejecting the total claim of ITC for that year and also raised a demand
for Rs. 100.13 lacs.Claims for the refund of Input Tax Credit in
respect of other financial years are at various stages of adjudication
with the Sales Tax Department. The Company expects realisation of
these refund claims not later than 12 months from 31st March, 2012. The
Company had also been advised by its lawyer that these claims were
worked out and made in confirmity and compliance with the stipulated
rules and procedures. Du ring the current financial year the Company
has received provisional refund of Input Tax Credit amounting to
Rs.21.84 lacs and Rs.21.01 lacs, which constiitute 75% of the amount of
accepted claims for the last quarter of the financial year 2009-2010
and first quarter of the financial year 2010-2011 against submission of
Indemnity Bonds equivalent to the amount of claim.
v) The Additional Commissioner of Central Excise, Kol-ll and Haldia
Commissionarate have raised two separate demands with penalty
agreegating to Rs. 136.56 lacs out of which Rs. 50.00 lacs was paid in
the financial year 2007-08. The Company had filed Appeals against the
above demands before the Commissionarate (Appeal -1 & II) of Central
Excise Kolkata which are still pending.
vi) Gratuity and Other Post-Employment Benefit Plans :
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The Company also provides Leave Encashment Benefit to employees,
whereby unutilised leave is carried forward and eligible for encashment
upon retirement / termination.
The following tables summarise the components of net benefit expense
recognised in the Profit and Loss Account and amounts recognised in the
Balance Sheet for the respective plans.
Profit and Loss Account
Net employee benefit expense (recognised in Employee Cost)
The principal assumptions are the (1) discount rate & (2) Salary
increase.
The discount rate should be based upon the market yields available on
Government bonds at the accounting date with a term that matches that
of the liabilities and the salary increase should take account of
inflation, seniority, promotion and other relevant factors.
The above information and data are based on actuarial certification.
vii) In the opinion of the Board, all Current Assets and Non-Current
Assets have a value on realisation in the ordinary course of business
at least equal to the amount at which they are stated in the accounts.
viii) The assets and liabilities which are expected to be realised and
payable in the ordinary course of business not later than 12 months
from the reporting date have been classified as current assets and
current liabilities in the Balance Sheet. All other assets and
liabilities have been classified as non-current.
ix) Foreign Exchange loss of Rs.15.08 lacs are net of exchange loss of
Rs. 50.65 lacs arising out of conversion of unexpired forward exchange
contract at marked to market and Rs.70.06 Lacs (P. Y. Rs. 3.55 lacs)
arising out of cancellation of forward exchange contract during the
year.
x) The following table shows the distribution of the CompanyâÃÃs
consolidated sales by geographical market,regardless of where the goods
were produced.
The Company has common cost, fixed assets and liabilities for all
geographical segments, hence separate figures for segment results,
fixed assets/addition to fixed assets and liabilities have not been
furnished.
xi) Provision for current tax has been made on the Book Profit of the
Company under Provisions of the Minimum Alternate Tax and asset in
respect thereof has not been recognised.
xii) Related party disclosures and transactions:
Note: Based on the legal opinion obtained North American Cast Iron
Products INC (NACIP) is not a related party as it is not an
"Enterprise" as per the definition of the Enterprise in Rule 2(e)
of the Companies Accounting Standards Rule, 2006, not requiring
disclosures of transactions under Accounting Standards (AS) 18.
xv) The financial statements for the year ended 31 st March, 2012 have
been prepared as per Revised Schedule VI under the Companies Act, 1956.
Previous year figures have been reclassified / regrouped/rearranged to
confirm to the current year's classification of Revised Schedule VI or
otherwise wherever necessary.
Mar 31, 2010
I) Estimated amount of contracts remaining to be executed on Capital
Account is Rs. 53.33 Lacs (Net of advance of Rs. 14.67 lacs) (Previous
year Rs.555.74 lacs, net of advance Rs. 12.90 lacs.)
ii) Contingent liability not provided for in respect of :
(Rs. in lacs)
2010 2009
a Outstanding Bank Guarantee 20.02 28.82
b. Differential Customs Duty Liability à 29.80
c. Disputed Income Tax Penalty
for the assessment year 2003-04 12.75 12.75
d. Disputed Duty & Penalty under Central
Excise Law 86.56 86.56
e. Disputed Vat Demand for the Financial
Year 2005-06 13.16 13.16
iii) Charge of hypothecation over Current Assets & Raw Materials
procured under letter of credit in favour of bankers has been created
for letter of credit issued. Agreegate value of such letter of credit
outstanding as on 31st March, 2010 is Rs. 107.77 lacs. (Previous Year
200.43 lacs.)
iv) The Sales Tax Department has rejected the claim for refund of Input
Tax Credit amounting to Rs. 106.03 lacs for the financial year 2005-06
vide their Order dated 25.11.2008 . However the Company has filed an
appeal before the Joint Commissioner of Sales Tax, Kolkata (South).
Circle for the same, which is still pending. Claims for the refund of
Input Tax Credit in respect of other financial years are at various
stages of adjudication with the Sales Tax Department. The Company is
hopeful about their early recovery since it has been advised by its
lawer that the said claims are worked out and made in conformity and
compliance with the stipulated rules and procedures.
v) The Additional Commissioner of Central Excise, Kol-II and Haldia
Commissionarate have raised two separate demands with penalty
agreegating to Rs. 136.56 lacs out of which Rs. 50.00 lacs was paid in
the financial year 2007-08. The Company has filed Appeals against the
above demands before the Commissionarate (Appeal - I & II) of Central
Excise, Kolkata which are still pending.
vi) Gratuity and Other Post-Employment Benefit Plans:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The Company also provides Leave Encashment Benefit to employees,
whereby unutilised leave is carried forward and eligible for encashment
upon retirement / termination.
The following tables summarise the components of net benefit expense
recognised in the Profit and Loss Account and amounts recognised in the
Balance Sheet for the respective plans.
vii) In view of insufficient information from the suppliers regarding
their status as Micro, Small and Medium Enterprises, the amount
remaining unpaid to such undertakings could not be ascertained for
separate disclosure in our accounts.
viii) In the opinion of the board, all Current Assets, Loans and
Advances have a value on realisation in the ordinary course of business
at least equal to the amount at which they are stated in the accounts.
ix) Since the matter relating to the resignation of Mr. Sanatan Kundu &
Mr. Madan Mohan Kundu as Directors is pending in court, provision for
their remuneration and other disclosure requirements will be dealt with
accordingly.
x) Advance includes Rs. 14.86 lacs and Rs. 0.91 lacs due from M/s. The
Salkia Industrial Works and M/s. India Casting Corporation
respectively. Legal suits have been filed by the Company for the
recovery of these dues which are still pending .
xi) Exchange rate difference includes exchange loss of Rs. 0.12 lacs
(P.Y- Rs. 32.00 lacs) arising out of cancellation of forward contract.
xii) In the opinoin of the Board there is no loss on account of
impairment of any asset during the year.
xiv) Borrowing cost capitalised during the year Rs. NIL (Previous Year
Rs. 9.27 lacs).
xv) The following table shows the distribution of the CompanyÃs
consolidated sales by geographical market, regardless of where the
goods were produced.
xvi) Provision for current income tax has been made on the Book Profit
of the Company U/s 115JB of the Income Tax Act, 1961 at the current tax
rate .
xvii) Previous years figures have been regrouped / revised wherever
found necessary.